M/s. I G Petrochemicals Limited, Bengaluru V. Deputy Commissioner Of Income Tax, Circle- 3(1)(1), Bengalore

ITA 2223/BANG/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 8501 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 2 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-01-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 12-01-2021
• Assessment Year: 2016-2017
• Appeal Filed On: 17-10-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MUZAFFAR HUSSAIN
• Keywords: Rectification of order; Tax effect; Set aside
• Section: 68; 154; 143(3)

Judgement Text

ITA NO.2223 /BANG/2019 M/S. I.G. PETROCHEMICALS LTD., BANGALORE IN THE INCOME TAX APPELLATE TRIBUNAL BBENCH: BANGALORE BEFORE SHRI B. R. BASKARAN, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA NO.2223/BANG/2019 ASSESSMENTYEAR:2016-17 M/S. I.G. PETROCHEMICALS LTD. D-4, JYOTHI COMPLEX, 134/1, INFANTRY ROAD BANGALORE-560 001. PAN NO : AAACI4115R VS. JCIT CIRCLE-3(1)(OSD) BANGALORE APPELLANT RESPONDENT APPELLANT BY : SMT. R. PRATHIBHA, A.R. RESPONDENT BY : SHRI MUZAFFAR HUSSAIN, D.R. DATE OF H EARING : 12.01.2021 DATE OF PRONOUNCEMENT : 12.01.2021 O R D E R PER B.R. BASKARAN, ACCOUNTANT MEMBER: THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 20.8.2019 PASSED BY LD. CIT(A)-3, BENGALURU AND IT RELATES TO THE ASSESSMENT YEAR 2016-17. THE ONLY ISSUE URGED IN TH IS ISSUE RELATES TO HEAD UNDER WHICH ADDITION MADE U/S 68 OF THE INC OME-TAX ACT,1961 ['THE ACT' FOR SHORT] IS TO BE INCLUDED. 2. THE LD. A.R. SUBMITTED THAT THE ASSESSMENT IN TH E HANDS OF THE ASSESSEE FOR THE YEAR UNDER CONSIDERATION WAS C OMPLETED U/S 143(3) OF THE ACT ON 29.12.2018. SUBSEQUENTLY, THE A.O. PASSED RECTIFICATION ORDER U/S 154 OF THE ACT ON 15.2.2019 IN ORDER TO GIVE ITA NO.2223 /BANG/2019 M/S. I.G. PETROCHEMICALS LTD., BANGALORE PAGE 2 OF 3 SET OFF OF BROUGHT FORWARD LOSSES. HOWEVER, WHILE COMPUTING THE TOTAL INCOME, THE A.O. HAS ADDED U/S 68 OF THE ACT AMOUNTING TO RS.6,52,50,000/- SEPARATELY TO THE TOTAL INCOME, WI THOUT INCLUDING THE SAME UNDER ANY OF THE HEADS, I.E., THE AO GAVE SET OFF OF THE BROUGHT FORWARD LOSSES, COMPUTED TAXABLE INCOME AND THEN ADDED THE ADDITION U/S 68 OF THE ACT. ACCORDINGLY THE TO TAL INCOME WAS COMPUTED. 3. THE ASSESSEE CHALLENGED THE ORDER PASSED U/S 154 OF THE ACT BY FILING APPEAL BEFORE LD. CIT(A), WHO DISMISSED T HE APPEAL OF THE ASSESSEE BY OBSERVING THAT THERE IS NO TAX EFFECT O N THE METHODOLOGY ADOPTED BY THE A.O. SINCE NO ADDITIONAL TAX LIABILI TY GETS IMPOSED ON THE APPELLANT. 4. THE LD. A.R. SUBMITTED THAT THE TREATMENT GIVEN BY THE A.O. MAY AFFECT THE QUANTUM OF LOSSES TO BE CARRIED FORW ARD BY THE ASSESSEE. SHE FURTHER SUBMITTED THAT THE ASSESSEE HAS ALSO FILED APPEAL BEFORE LD. CIT(A) CHALLENGING THE ASSESSMENT ORDER PASSED U/S 143(3) OF THE ACT AND HENCE, THE QUESTION AS TO WHETHER THERE IS ANY ADDITIONAL TAX LIABILITY OR NOT ON ACCOUNT OF D IFFERENT TREATMENT GIVEN BY THE A.O. WOULD BE DETERMINABLE ONLY AFTER THE ORDER PASSED BY LD. CIT(A). UNDER THESE SET OF FACTS, THE LD. A .R. PRAYED THAT THIS APPEAL MAY ALSO BE RESTORED TO THE FILE OF LD. CIT( A) SO THAT HE COULD DISPOSE OF BOTH THE APPEALS OF THE ASSESSEE, VIZ., APPEAL FILED AGAINST ORDER PASSED U/S 143(3) OF THE ACT AND THE APPEAL F ILED AGAINST THE ORDER PASSED U/S 154 OF THE ACT TOGETHER. 5. WE HEARD LD. D.R. WHO DID NOT OBJECT TO THE PRAY ER PUT FORTH BY THE ASSESSEE. ITA NO.2223 /BANG/2019 M/S. I.G. PETROCHEMICALS LTD., BANGALORE PAGE 3 OF 3 6. HAVING REGARD TO THE SUBMISSIONS MADE BY LD. A.R ., WE ARE ALSO OF THE VIEW THAT THE ISSUES CONTESTED IN THIS APPEAL MAY BE RESTORED TO THE FILE OF LD. CIT(A), SINCE IT WILL B E EASY TO APPRECIATE THE CONTENTIONS OF THE ASSESSEE, IF BOTH THE APPEAL S OF THE ASSESSEE ARE DISPOSED TOGETHER. ACCORDINGLY, WE SET ASIDE T HE IMPUGNED ORDER PASSED BY LD. CIT(A) AND RESTORE ALL THE ISSU ES TO HIS FILE FOR EXAMINING THEM AFRESH, AFTER AFFORDING ADEQUATE OPP ORTUNITY OF BEING HEARD TO THE ASSESSEE. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 12 TH JAN, 2021 SD/- (BEENA PILLAI) JUDICIAL MEMBER SD/- (B.R. BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED 12 TH JAN, 2021. VG/SPS COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE